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Severance Question...
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Severance Question... - October 29, 2007, 08:32 AM

The company I work for was unsuccessful in our govt contract rebid. Therefore, on 12/21 our period of performance will end and we will no longer be employees of the company and our benefits will terminate on that date (no effort is being made to place us within one of the largest government contracting companies )...

So anyway, our HR representative told us that if we get picked up by the company that won the contract, we will not receive a severance package. Also, if the company that won the contract makes us an offer and we don't take it, the only way we will be eligible for a severance package is if the offer is 15 percent lower than our current salary or the job location is more than 50 miles away from our current location.

Can they do that? This isn't a buy out situation.... this is a lay off situation due to the loss of a contract. Sounds like total BS to me... and mind you, none of this has been presented to us in writing..
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October 29, 2007, 08:38 AM

Uh...HR is NOT you friend. They are there to protect the company...not you. But if it's a big company...more than likely it's legal...but still screwing you over.


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October 29, 2007, 09:20 AM

It's legal. I know a company that's about to move jobs from Manassas to the Silver Spring area. The not so funny thing is, the workers don't even know, yet. According to their mgmt, they don't need to know until 30 days prior.
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October 29, 2007, 09:23 AM

Sadley yes they can do it. Corporate America pretty much does what they want. Fuck the little people who make it happen.

Good luck.


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October 29, 2007, 09:29 AM

DOH!
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October 29, 2007, 09:48 AM

yeah my company is moving space with DC however moving one department to Chantilly...

The company can do this and is probably being more flexible then some other area companies they just shut things down.

Sadly most people wait till the job is gone to begin looking for a new one...

Start looking now while you still have a gig.
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October 29, 2007, 09:49 AM

yeah, they can do it, pretty much had the same thing happen in my old company. most people simply got picked up by the new company without much trouble, but it took a long time for the program to run semi-smoothly again. It was a real pain in the ass.. That experience is what prompted me to seek direct govt employment... Not a fan of being told that you may or may not have a job in 2 months.

You shouldn't have much problem getting picked up by the new company, just dont try to highball them for your new salary, they'll have a pretty good idea of what you and coworkers make now. Good luck.


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October 29, 2007, 11:40 AM

Corporate america is NOT about the employees.

Anybody hiring?


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October 29, 2007, 11:43 AM

Depends upon how widespread the layoffs are. There is a federal law that mandates 2 months pay and medical coverage if less than 60 days notice is given for major cutbacks. I was a recent victim of AOL's greed and mis-management -- that law is in effect.


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October 29, 2007, 11:44 AM

Wow, that blows. It sounds legit, although I've never worked in the contracting world.


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October 29, 2007, 11:45 AM

No. That's the WARN law. Basically 2 months warning if a certain percentage is going to be laid off. AOL "warns" you...and says don't come back. Then they give 2 months severance, plus the yearly bonus in the spring.

And my current (soon to be ex) company is hiring QA. Our current one just quit. DOH!


I want my baby back, baby back, baby back....Chileeeeee's bay back...
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October 29, 2007, 11:46 AM

Quote:
Originally Posted by Ducatista
Wow, that blows. It sounds legit, although I've never worked in the contracting world.
Slacker!


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October 29, 2007, 11:54 AM

Not exactly correct. For example: EDS aquired a company that had in place a severance package of 1 months pay + 1 month for every year of employment. EDS wanted to avoid that so they made certain they notified the employees they needed to cut under the 60 days notice period -- thus they were mandated by Fed law to pay just 2 months severance. They made the law work in their favor - a direct opposite use that the Congress foresaw.


Quote:
Originally Posted by MudDawg
No. That's the WARN law. Basically 2 months warning if a certain percentage is going to be laid off. AOL "warns" you...and says don't come back. Then they give 2 months severance, plus the yearly bonus in the spring.

And my current (soon to be ex) company is hiring QA. Our current one just quit. DOH!


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October 29, 2007, 03:08 PM

My understanding is Virginia is a right to work state and that employers are under no obligation for severance other than what is already owed (stored up sick and vacation, depending upon the natures of their plans).

Anything else is gravy and should be seized when offered and taken graciously.

TOYMAN


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October 29, 2007, 03:10 PM

Oops -- and sorry to hear you're losing your gig but I'm sure you're marketable and will do fine! (: Just get hopping looking, 'kay? (:

TOYMAN


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